Resolution no. 21051

Order pursuant to article 7-octies, paragraph 1, letter b) of Legislative Decree no. 58/1998 ('Consolidated Law on Finance') to cease the infringement of article 18 of the Consolidated Law on Finance performed through the https://cfd2fx.com website

LA COMMISSIONE NAZIONALE PER LE SOCIETÀ E LA BORSA
[THE NATIONAL COMMISSION FOR COMPANIES AND THE STOCK EXCHANGE]

HAVING REGARD TO Law no. 216 of June 7, 1974 and subsequent amendments and additions;

HAVING REGARD TO Legislative Decree no. 58 of February 24, 1998 ('Consolidated Law on Finance') and subsequent amendments and additions;

HAVING ESTABLISHED that, from checks on the https://cfd2fx.com website, it emerged that:

i. the website https://cfd2fx.com, also available in Italian, offers potential investors, subject to opening an account via a registration procedure that is also available to Italian users, the opportunity to trade in CFDs relating to raw materials and futures relating to commodities;

ii. in order to perform trading transactions, a investment of money is required,

to be paid into the account opened online; in particular, there are three types of account, named - according to the minimum deposit required and the benefits promised - 'Micro', 'Standard' and 'Gold';

iii. the 'Terms and Conditions' document found on the website states that 'cfd2fx is managed and owned by Lion Finance Ltd', with alleged registered address in Saint Vincent and the Grenadines;

HAVING CONSIDERED that the activity carried out via the said website can be classed as the provision of investment services as referred to in Art. 1, para. 5, of the Consolidated Law on Finance, insofar as clients are offered the opportunity of opening a trading account against which purchase and/or sale orders for financial instruments can be issued;

HAVING CONSIDERED that the operations described above, performed via the websitehttps://cfd2fx.com, are still ongoing and are directed towards Italian investors, insofar as the website is available in Italian and there have been reports of Italian customers being contacted via cold calling by individuals operating on behalf of the website;

HAVING CONSIDERED that Lion Finance Ltd, with alleged registered address in Saint Vincent and the Grenadines, mentioned on the website, is not authorised to provide investment services to the Italian public, insofar as it is not registered on the dedicated register held by CONSOB pursuant to art. 20 of the Consolidated Law on Finance;

HAVING REGARD TO the fact that the provision of investment services and activities is reserved for authorised entities as referred to under art. 18, para. 1, of the Consolidated Law on Finance, pursuant to which, 'The professional provision of investment services and activities for the public is reserved for investment firms and banks';

HAVING ESTABLISHED, therefore, that the operations in question qualify as the professional provision of investment services involving financial instruments to the Italian public, in infringement of art. 18, para. 1, of the Consolidated Law on Finance; 18, paragraph 1 of the Consolidated Law on Finance;

HAVING CONSIDERED that, according to the provisions of art. 1, para. 7-octies of the Consolidated Law on Finance - 'Powers to counteract abuse” - CONSOB “may, with regard to anyone who offers or performs investment services or activities through the Internet without due authorisation pursuant to this decree: […] (b) order the cessation of the infringement';

CONSIDERING it therefore necessary, in the light of the foregoing, to adopt this resolution immediately for reasons of urgency;

HEREBY RESOLVES:

To order the cessation of the infringement of art .18 of Legislative Decree no. 58/1998 also performed via the https://cfd2fx.com website, consisting of the provision of investment services and activities to the Italian public.

This Resolution shall be brought to the attention of those whom it concerns and will be published in the CONSOB Bulletin.

This measure may be appealed before the Regional Administrative Court of Lazio within 60 days of the date of service.

September 19, 2019

THE CHAIRMAN

Paolo Savona